On the afternoon of May 18, Shenzhen Huijie Group Co.Ltd(002763) ( Shenzhen Huijie Group Co.Ltd(002763) , SZ) 2021 annual general meeting of shareholders was held in Shenzhen. The enterprise was listed in 2015. It owns underwear brands such as manifen, Yves and landjolie, which is the “first underwear share” of a shares.
The reporter of the daily economic news found at the scene that Shenzhen Huijie Group Co.Ltd(002763) the number of shareholders present at the shareholders’ meeting was not large. There were 10 shareholders who voted on the spot, representing 277 million shares, accounting for 675846% of the total shares of the listed company. The annual general meeting of shareholders also proceeded rapidly, and the whole process of the on-site meeting ended in only more than 20 minutes.
It should be noted that this year, Shenzhen Huijie Group Co.Ltd(002763) the annual audit accountant issued a qualified audit report on the company’s 2021 financial and accounting report. At the meeting, the reporter asked questions on matters related to the company’s financial report reservations. The company’s board secretary and securities affairs representative replied to the reporter after the meeting. There will be reports in the follow-up of the daily economic news.
On May 18, the Shenzhen Stock Exchange issued the annual report inquiry letter to Shenzhen Huijie Group Co.Ltd(002763) and the inquiry contents were also related to the matters involved in the qualified opinion of Shenzhen Huijie Group Co.Ltd(002763) financial report.
is it a hidden related party? Unable to judge
Shenzhen Huijie Group Co.Ltd(002763) 2021 annual general meeting of shareholders was completed at a faster speed. After the board secretary read out the rules of procedure of the general meeting of shareholders, Shenzhen Huijie Group Co.Ltd(002763) chairman and general manager LV Xingping briefly read out the 9 proposals to be considered at the general meeting of shareholders. Then, Gao Hong, the independent director of the company, made a work report through the telephone access meeting, and then entered the link of shareholders’ questions and voting.
However, compared with the simplicity and efficiency of the meeting, the situation disclosed in the annual report of Shenzhen Huijie Group Co.Ltd(002763) 2021 is much more complex.
According to the annual report of 2021, Shenzhen Huijie Group Co.Ltd(002763) 2021 purchased 245 million yuan from Shantou Yizhen superior Garment Co., Ltd. (hereinafter referred to as Yizhen superior), accounting for 28.67% of the total annual procurement.
However, the annual audit accountant gave a qualified opinion on the financial accounting report of Shenzhen Huijie Group Co.Ltd(002763) 2021 because Shenzhen Huijie Group Co.Ltd(002763) could not judge whether a needle of high-quality products was related to the listed company. Therefore, the accountant could not obtain sufficient and appropriate audit evidence on the integrity of the relevant disclosure of the listed company, nor could he determine the possible impact of the event on the financial statements.
The affair began on January 11, 2022. Shenzhen Huijie Group Co.Ltd(002763) received a request from the independent director to specially investigate the market rumors related to a needle of superior products and Shantou man quality Clothing Co., Ltd. (hereinafter referred to as man quality) and the listed company. Subsequently, Shenzhen Huijie Group Co.Ltd(002763) set up a special team to conduct a special investigation on the rumored matters, and asked to stop the suspected acts of unfair competition on the false claims that Shenzhen Huijie Group Co.Ltd(002763) invested in the establishment of Shenzhen Huijie Group Co.Ltd(002763) and the use of “manifen Industrial Park” in its registered address.
However, Shenzhen Huijie Group Co.Ltd(002763) both said in the annual report disclosed on April 28 that “no judgment can be made” on whether there is a hidden relationship between a needle superior product and the company and whether there is a hidden horizontal competition relationship between man quality and the company.
On May 18, the reporter asked again at the shareholders’ meeting whether there was any new progress in the investigation so far and whether it could be judged, and still got a negative answer.
According to the disclosure, since 2018, Yipin premium products has become the largest supplier of Shenzhen Huijie Group Co.Ltd(002763) . The reporter inquired about the previous annual report and found that Shenzhen Huijie Group Co.Ltd(002763) did not disclose the specific name of the annual supplier from 2018 to 2020. The purchase amount of the largest supplier in these three years was 133 million yuan, 177 million yuan and 162 million yuan respectively. The reporter found in qixinbao that one needle superior product was established on December 26, 2017 and is 100% owned by natural person Peng Zhenshen.
“The company has cancelled the qualification of outsourcing supplier of Shantou Yizhen YOUPIN Garment Co., Ltd.” On May 10, at the 2021 annual performance presentation meeting, Shenzhen Huijie Group Co.Ltd(002763) said so.
underwear competition intensifies, “very confident in their own products”
In fact, as the first share of A-share underwear, Shenzhen Huijie Group Co.Ltd(002763) last year’s sales performance was good.
In 2021, Shenzhen Huijie Group Co.Ltd(002763) achieved an operating revenue of about 2.733 billion yuan, with a year-on-year increase of 15.18%; The net profit attributable to the shareholders of the listed company was about 276 million yuan, an increase of 30.96% year-on-year; The basic earnings per share was 0.69 yuan, a year-on-year increase of 30.19%.
Manifen, Yves and landjolie are the three major underwear brands under Shenzhen Huijie Group Co.Ltd(002763) banner. In 2021, the corresponding revenues of these three brands were 1.826 billion yuan, 507 million yuan and 230 million yuan respectively, accounting for 67.07%, 18.63% and 8.43% respectively. The reporter found that in 2020, the corresponding revenue of the three brands was 1.569 billion yuan, 418 million yuan and 220 million yuan respectively.
In terms of the number of self operated stores, the number of self operated stores in the annual report reached 1183, and the number of self operated stores in the report period reached 3031, and the number of self operated stores in the report period was 3031.
At the same time, Shenzhen Huijie Group Co.Ltd(002763) also said that during the reporting period, the average operating revenue of the company’s Direct stores opened for more than 12 months was 1.1382 million yuan, a year-on-year increase of 21.35%.
Shenzhen Huijie Group Co.Ltd(002763) said that China has a large population and a large underwear age consumer group. With the maturity of underwear consumption consciousness and the improvement of consumption ability, China’s clothing industry still has a lot of room for growth. But at the same time, with the change of sales format and the rise of new Internet brands, the competition among underwear brands is also intensifying.
At the previous exchange meeting, Shenzhen Huijie Group Co.Ltd(002763) said that the user’s demand is not determined by the manufacturer, but by the user. It is the same logic as wearing shoes. People who wear shoes know best whether they fit or not. If we can’t return to the consideration of users, our own profitability and self hematopoietic ability, we can’t develop sustainably. “We are very confident in our products”.
Shenzhen Huijie Group Co.Ltd(002763) disclosed the first quarterly report on April 28, 2022. In the first quarter, the total operating revenue was 650 million yuan, a year-on-year decrease of 2.9%; The profit attributable to shareholders of listed companies was 86.403 million yuan, a year-on-year decrease of 21.7%.
